NABARD finds 1 in 4 rural households understand credit scores
A new NABARD survey shows that just one in four rural households in India understand what a credit score is or why it matters for getting loans.
High borrowing costs are still a major roadblock, and over half of those who took loans said they didn't actually see their income go up.
To help fix this, the latest Union Budget has proposed a Grameen Credit Score framework to boost financial awareness and make formal loans more accessible.
Survey shows informal borrowing at 16%
The survey, which covered 20,000 households nationwide, found fewer people are turning to informal lenders, just 16% in 2026 compared to 25% four years ago.
Friends and relatives remain the main informal source (more than 61%), while moneylenders now play a much smaller role (13.6%).
The findings really highlight how important better financial literacy and easier access to formal credit could be for rural families.